Should You Think About Buying a Freehold?
When buying a flat it is common that you will be buying a leasehold interest. This is where purchasing a flat does differ from purchasing a house. The flat could have a long lease on it, such as 99 years, however you should always check the length before going ahead with the purchase.
However even when you have purchased a flat on a leasehold basis you may consider buying the freehold on it later on. There are specific legal conditions that must be met for this to occur, but if you can meet all the conditions for a freehold right to buy situation, you can unlock several advantages.
Firstly you will benefit from a higher selling price should you ever decide to move in the future. Some savvy flat purchasers will look to see if they can go for buying a freehold instead of a leasehold arrangement, as it will benefit them too. As such they will pay more for the privilege. It is also the case that as a lease diminishes in length, the cost of the property will go down too. This is because it is less inviting for a person to buy a property with a lease of, say, ten years than it would be to buy one with a lease of fifty years.
The freehold right to buy is available to many flat owners provided they are able to meet certain conditions laid down within the law. For example the right is only available to those on a residential lease as opposed to a business lease. In addition to this you will need to have had 21 years on the original lease for it to be valid for the freehold right to buy opportunity.
You also have to have a minimum of 50% of the total number of qualifying flat owners agreeing to go through the process with you -which can sometimes be tricky to organize.. If you alone want to do it you will not be able to participate in buying a freehold.
As you can see it is worth exploring the situation for constructing a specialist solicitor for the right legal advice - in fact, as freehold purchase is such a specialist area, you might decide to use one of the online solicitors specializing in freehold purchase work. If you cannot get enough other flat owners to take part in buying the freehold together, there is little point in asking for advice on the freehold right to buy initially. However with so many advantages to successfully completing the process, it is wise to let other owners think about it for a while first.
Thinking of buying freehold property? Make sure you talk to Bonallack & Bishop first- Solicitors specialising in freehold purchase.
http://freehold-purchase.co.uk/buying_freehold.aspx
However even when you have purchased a flat on a leasehold basis you may consider buying the freehold on it later on. There are specific legal conditions that must be met for this to occur, but if you can meet all the conditions for a freehold right to buy situation, you can unlock several advantages.
Firstly you will benefit from a higher selling price should you ever decide to move in the future. Some savvy flat purchasers will look to see if they can go for buying a freehold instead of a leasehold arrangement, as it will benefit them too. As such they will pay more for the privilege. It is also the case that as a lease diminishes in length, the cost of the property will go down too. This is because it is less inviting for a person to buy a property with a lease of, say, ten years than it would be to buy one with a lease of fifty years.
The freehold right to buy is available to many flat owners provided they are able to meet certain conditions laid down within the law. For example the right is only available to those on a residential lease as opposed to a business lease. In addition to this you will need to have had 21 years on the original lease for it to be valid for the freehold right to buy opportunity.
You also have to have a minimum of 50% of the total number of qualifying flat owners agreeing to go through the process with you -which can sometimes be tricky to organize.. If you alone want to do it you will not be able to participate in buying a freehold.
As you can see it is worth exploring the situation for constructing a specialist solicitor for the right legal advice - in fact, as freehold purchase is such a specialist area, you might decide to use one of the online solicitors specializing in freehold purchase work. If you cannot get enough other flat owners to take part in buying the freehold together, there is little point in asking for advice on the freehold right to buy initially. However with so many advantages to successfully completing the process, it is wise to let other owners think about it for a while first.
Thinking of buying freehold property? Make sure you talk to Bonallack & Bishop first- Solicitors specialising in freehold purchase.
http://freehold-purchase.co.uk/buying_freehold.aspx
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